Firms face obstacles in joints projects

JAKARTA (JP): Private sector companies, in partnership with state-owned companies, face many obstacles in the development of infrastructure projects, businessman Ciputra said yesterday.

He told participants of a two-day seminar on infrastructure development that the most difficult obstacle to cope with is the negative image among the public about any private sector company which wins contracts for infrastructure development in partnership with state-owned firms.

Such a negative image, which is generally created by society leaders, non-governmental organizations and the media, will disturb the development of infrastructure projects, he said.

"There is a wrong presumption from the public that private investors participating in infrastructure development projects aim merely to get profits and to make a fool of the government," Ciputra added.

The government has to clear up such a wrong assumption to support the partnership spirit, he said.

Ciputra admitted that it is difficult for private investors to get profits from the development of infrastructure projects. "Infrastructure is expensive, so legal certainty is needed to make private investors feel secure with their investments," he said.

Deputy Chairman of the National Development Planning Board, Rahardi Ramelan, said that the development of infrastructure facilities in the coming five years period needs more than US$50 billion in investments. (31)